[ItsNotAboutTheMoney]

If you buy a used Volt for $13,000 can you take a $7,500 federal tax credit .

No. You must be the first title holder.

 

[2015 volt]

the oriinal owner was given the tax credit, there is no tax credit available on a used volt
the only way a tax credit works, is if you have to pay instead of a tax refund, and if you have to pay,you only get what is owed up to $7,500,you don't get the leftover amount

 

[TSquare]

the only way a tax credit works, is if you have to pay instead of a tax refund, and if you have to pay,you only get what is owed up to $7,500,you don't get the leftover amount

The tax credit has NOTHING to do with your refund. EVERYBODY has to pay, most of us pay with weekly withholding. Those that pay too much get a refund, it you didn't pay enough, then you have to pay. The tax credit reduces what you owe BEFORE any payments have been made either through withholding or an April 15 check.

 

[Gary Norton]

No. And part of the reason why you can buy that Volt for only $13,000 is because the original owner already pocketed the $7,500 credit when he bought the car. The used car price is discounted by the credit.

 

[2VoltFamily]

the oriinal owner was given the tax credit, there is no tax credit available on a used volt

This is true.

the only way a tax credit works, is if you have to pay instead of a tax refund, and if you have to pay,you only get what is owed up to $7,500,you don't get the leftover amount

This is misleading. You could have a refund owed you and still get the $7500 or a portion.

Suppose you had $10,000 withheld throughout the year. After doing your tax return you find that you will receive a $500 refund. Therefore your tax liability was $9500. Now factor in your credit. You would still get the $7500 and in addition you would still get the $500. So your total refund check would be $8000.

For those that are not smucks like me and they do not do withholding, their liability is reduced by $7500 not to go below $0.

 

[Just_Jon]

...EVERYBODY has to pay, most of us pay with weekly withholding...

Actually, this isn't even close to true. Almost half of American households pay ZERO Federal Income Tax.

This means they can not benefit from the tax credit at all (granted many of them also can't afford a Volt either way). In addition, many households have to pay some fed income tax but less than $7500.

 

[BAZINGA]

No. And part of the reason why you can buy that Volt for only $13,000 is because the original owner already pocketed the $7,500 credit when he bought the car. The used car price is discounted by the credit.

+1. That's why you can buy a $40K+ 3 year old car for $13K.

 

[TSquare]

Actually, this isn't even close to true. Almost half of American households pay ZERO Federal Income Tax.

This means they can not benefit from the tax credit at all (granted many of them also can't afford a Volt either way). In addition, many households have to pay some fed income tax but less than $7500.

I guess I should have phrased it. If you work and receive an income, you owe taxes.

 

[Just_Jon]

I guess I should have phrased it. If you work and receive an income, you owe taxes.

Yes, you will pay FICA. But because of personal exemptions, deductions and Earned Income Tax Credit, a married couple with kids can earn something like $30-35K and have zero Federal Income Tax liability. That is the important number for the EV tax credit.

 

[wizard_of-ahs]

Thanks for the explanation.

 

[Cheburashka]

So I'm wondering if the new Administration is going to continue to support the tax credit. And I'm hoping I can ask a simple question like that without starting a political flame war.

 

[hellsop]

So I'm wondering if the new Administration is going to continue to support the tax credit. And I'm hoping I can ask a simple question like that without starting a political flame war.

At this point, we know of no plans to eliminate the credit early, nor do we have reason to think such concerns aren't credible.

And that's about as far as we can go without cranking valves on the propane tanks and testing igniters.

 

[2015 volt]

as long as they haven't reached the maximum volt's sold that the tax credit was originally started for,the tax credit is still available
but the gasoline was raised 42% in California by the governor,now he is the best volt salesman in California,and all volt's on the dealer lot's will be gone as fast as they get there!!! lol!!!